How the AI boom exposes investors to risk, while a downturn could see a sharp crash: BIS

Source: Tech – South China Morning PostAs the global financial system struggles to keep pace with the artificial intelligence investment boom and capital flows surge through loosely regulated, non-bank channels, a key international organisation has warned that an AI downturn could develop into a sharper, faster crash than a traditional banking crisis.
In its annual economic report released on Sunday, the Bank for International Settlements (BIS) said funding for AI was increasingly channelled through hedge funds, private credit…Read More

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